U.S. House Presents ‘Modern Steel Bill’ to Promote Steel Sector Progress

Starting point of new steel innovation
A recent initiative to create new steel plants in American industrial cities and improve policy support has garnered interest from political leaders and the U.S. steel sector alike.

The goal of the “Modern Steel Act”
The ‘Modern Steel Act’ was introduced by Rep. Ro Khanna, a Democrat in the U.S. House of Representatives, with the goal of revitalizing the U.S. steel industry.

This significant legislation focuses on constructing new steel facilities in areas where the industry has declined, restoring next-generation steel production in the U.S., enhancing domestic manufacturing, generating high-paying jobs, maintaining current employment levels, and strengthening America’s global competitiveness.

Khanna announced the bill in Johnstown, Pennsylvania, a city that once played a pivotal role in the U.S. steel industry but has faced decline.

Kevin Dempsey, President and CEO of the American Iron and Steel Institute (AISI), stated, “While the U.S. steel sector leads the world in clean steel production, we have much work ahead to achieve carbon neutrality. We endorse a bill that encourages investment in innovative technologies like hydrogen-based steelmaking and electrolysis, promotes continuous progress in the sector, and offers tax incentives to create jobs through effective public-private partnerships.”

The bill has also gained support from the United Steelworkers (USW), steel manufacturers such as Cleveland-Cliffs, and various industry associations.

Crucially, the ‘Modern Steel Act’ aims to partner with the steel industry and its workforce to build cutting-edge facilities that leverage green technologies like hydrogen and electrolysis for carbon-neutral steel production. It provides for a $10 billion cost-sharing grant, low-interest loans, and additional financial support, alongside plans to modernize existing blast furnaces, electric arc furnaces, and smaller plants for low-carbon steel manufacturing.

As the ‘Modern Steel Act’ is introduced, there is increasing speculation that the U.S. government will enhance its backing for the steel sector and tighten import regulations.

Earlier in July, the U.S. House proposed the ‘Prove It Act,’ which seeks to provide reliable and verifiable data on emission intensity and transparency for the steel industry. This bill has received strong backing from the American Iron and Steel Institute (AISI) and the Steel Manufacturers Association (SMA).

Moreover, seven industry groups, including SMA, have advocated for the ‘Leveling the Playing Field 2.0 Act,’ a legislative package designed to safeguard U.S. industries from unfair trade practices by China, in addition to existing Section 232 tariffs and regulations against import circumvention.